Competitiveness management to ensure financial sustainability

Business Activity ◽

Managerial Decision ◽

Operating Cycle ◽

Financial Cycle ◽

In a highly competitive environment, it is very important to maintain a high level of business activity. To make a management decision in the field of marketing, a complex indicator of turnover is important - the duration of the operating cycle in days. And for making a managerial decision in the field of financial management, it matters - the duration of the financial cycle in days, since the level of financial stability of the enterprise depends on this.

FINANCIAL CONTROLLING IN THE SYSTEM OF FINANCIAL MANAGEMENT

Knowledge International Journal ◽

10.35120/kij2801137y ◽

2018 ◽

Vol 28 (1) ◽

pp. 137-141

Author(s):

Petya Yordanova – Dinova

Keyword(s):

Comparative Analysis ◽

Financial Management ◽

Financial Stability ◽

Business Environment ◽

Innovative Approach ◽

The Common ◽

The Difference ◽

Effective Use ◽

And Control

This paper explores the comparative analysis of the financial controlling, who is a result from the common controlling concept and the financial management. In the specialized literature, financial controlling is seen as an innovative approach to financial management. It is often presented as the most promising instrument of financial diagnostics. Generally speaking, financial controlling is seen as a process of managing the company`s assets which are valued in monetary measures. The difference between the financial management and the financial controlling is that the second covers all functions of management, analysis and control of finances, aiming at maximizing their effective use and increasing the value of the enterprise. Financial controlling is often seen as a function of the common practice of financial management. Its objective is to preserve the financial stability and financial sustainability of enterprises operating in a highly aggressive business environment.

Management towards financial sustainability for private health companies

Management Research Review ◽

10.1108/mrr-11-2016-0257 ◽

2018 ◽

Vol 41 (3) ◽

pp. 379-394 ◽

Cited By ~ 1

Author(s):

Lucas Manoel Marques Clemente ◽

Alexandre Pereira Salgado Junior ◽

Eduardo Falsarella Júnior ◽

Marco Antonio Alves de Souza Junior ◽

Juliana Chiaretti Novi ◽

...

Keyword(s):

Health Insurance ◽

Financial Management ◽

Management Practices ◽

Qualitative Comparative Analysis ◽

High Volume ◽

Long Term Results ◽

Management Tools ◽

Content Type ◽

Purpose The purpose of this study was to identify a set of management practices towards financial sustainability for Brazilian private health insurance and plans companies. Design/methodology/approach The present paper uses a bimodal two-step approach. The first step was quantitative, with the data envelopment analysis (DEA) technique in 521 Brazilian private health companies (PHCs). At this stage, the objective was to obtain scores to rank the PHCs regarding their financial performance and services in 2013. From the quantitative analysis, two PHCs displaying contrasting performances were selected and interviewed to identify differentiating management practices. Findings The Group Medicine PHCs displayed a higher performance in the financial approach. Following the qualitative comparative analysis, the financially sustainable PHC presented the following differentials: a high level of financial management professionalization, a deliberate policy for the control and prevention of claims and a larger share of revenues from health plans over service revenues. Research limitations/implications However, a limitation of the study lies in the fact that by not using any cash flow or financial result variables, the financial efficiency model used in the study does not evaluate the generation capacity of long-term results. It is noteworthy that, because it is a multiple case study, the results found cannot be generalized and should be understood only as characteristics of the studied PHCs in here. Practical implications The present paper can contribute to managers of Brazilian PCHs towards the implementation of management tools aimed at the sustainability of those organizations. Originality/value Despite the importance of the Supplemental Health Insurance System for public health in Brazil, PHCs have received a high volume of complaints and struggled with constant financial problems.

RESEARCH OF FORMATION AND USE OF CORPORATE ENTERPRISE`S FINANCIAL RESOURCES

Vìsnik Sumsʹkogo deržavnogo unìversitetu ◽

10.21272/1817-9215.2021.2-10 ◽

2021 ◽

Vol 2021 (2) ◽

Author(s):

L.L. Hrytsenko ◽

L.S. Derkach

Keyword(s):

Financial Management ◽

Financial Stability ◽

Theoretical Basis ◽

Financial Resources ◽

Business Activity ◽

Urgent Problem ◽

Economic Activities ◽

Effective Operation ◽

Theoretical Foundations

The article analyzes the theoretical essence of formation and use of enterprise’s financial resources. Our country is in conditions of economic instability caused by various destructive factors. In this regard, domestic enterprises are increasingly faced with the problem of insufficient financial resources and sources of its formation. The situation is exacerbated by a reckless approach to the use of these resources. In fact, inefficient formation and use of financial resources is an urgent problem. Therefore, there is a need to research the theoretical foundations of the formation and use of financial resources of the enterprise as a basis for effective functioning in the current circumstances. The article proves that the formation and use of financial resources is an important component of the overall system of enterprises’ financial management. Also it describes the essence of the term "financial resources of the enterprise" by considering various scientific approaches to the interpretation of this category. Our own interpretation of this term was formed. In addition we emphasized the distinction between the categories of "financial resources" and "cash". The article contains explanation theoretical basis of the financial resources formation, focusing on the sources, which are divided into internal and external. Besides the article highlights the main areas of use of funds and finds a reasonable classification by types of assets and types of expenditures. There are the main indicators for assessing the effectiveness of the use of financial resources of the enterprise are outlined, which include analysis of the dynamic and structure of funds and the ratios of financial stability, liquidity, business activity and profitability. A number of problems that impede the smooth running of economic activities have been identified. Recommendations for improving the quality of formation and use of financial resources of a corporate enterprise have also been developed. Ensuring careful control over the formation and use of enterprise’s financial resources is a prerequisite for its effective operation.

The structure of the enterprise’s financial management

Economics. Finances. Law ◽

10.37634/efp.2021.2.2 ◽

2021 ◽

pp. 10-12

Author(s):

Olena BROVKOVA ◽

Hanna KOVALOVA

Keyword(s):

Operations Management ◽

Financial Management ◽

Financial Stability ◽

Enterprise Management ◽

Modern Enterprise ◽

Effective Development ◽

High Level ◽

And Control ◽

Relationship Of ◽

The Relationship

The paper considers in detail the structure of financial management of the enterprise. The possibility of survival and effective development of the enterprise in dynamic and often unfavorable environmental conditions is determined by how competent managers are in matters of financial management. Skillful management of three processes – current operation, continuous improvement, radical development – determines the effectiveness of enterprise management. Financial management is a very important process of any enterprise in the process of capital movement. The paper considers the main definitions and principles of using financial management sub-processes in the management of a modern enterprise, as well as highlights the relationship of these sub-processes in the appendix to the activities of the financial manager. The principle of financial stability is characterized by such activities of the enterprise through which it could at any time, to settle their debts with their own or borrowed funds. Making a profit (the most key measure of financial efficiency of the enterprise) – getting a positive difference between the total income of the enterprise and its costs (in monetary terms). The scientific prerequisite for financial management is a fairly high level of development of economics. The activity of any enterprise is not possible without the management of facilities or processes (personnel management, operations management, etc.). Thus, any enterprise can be represented in the form of two subsystems – managed and control.

Journal of Lviv Polytechnic National University. Series of Economics and Management Issues ◽

MANAGEMENT OF FINANCIAL SUSTAINABILITY OF THE ENTERPRISE AND ITS FEATURES IN THE FIELD OF SMALL RESTAURANT BUSINESS

10.23939/semi2021.01.001 ◽

2021 ◽

Vol 5 (1) ◽

pp. 1-14

Author(s):

N. Hembarska ◽

◽

Kh. Danylkiv ◽

L. Kvasnii ◽

◽

...

Keyword(s):

Financial Management ◽

Small Businesses ◽

Financial Stability ◽

Large Scale ◽

External Factors ◽

Small Enterprise ◽

Sustainability Management ◽

Financial Condition ◽

Internal And External Factors

Purpose. The purpose of this study is to analyze the theoretical foundations of financial sustainability management and their practical application in the field of small restaurant business, improve methodological approaches and develop recommendations for the concept of financial sustainability management to overcome existing problems in today’s conditions. Design/methodology/approach. In the article the authors used the methods of induction, deduction, theoretical generalization to clarify the essence of financial stability from the standpoint of different authors and formulate a generalizing concept used to determine the basic principles of financial stability management, its tasks, components and the sequence of their application in the formation of the concept of managing the financial stability of a modern enterprise; observation, causation, description, specification, formalization – to analyze the problems of choosing the method on the basis of which the calculation of the main indicators of financial stability of the enterprise, as well as interpretation of the data to be used for small businesses, their calculation and the desired trend of change, the characteristics of the accounting support of this process; dialectical, modeling, generalization – to develop recommendations for improving the methodology and organization of the process of managing the financial stability of a small restaurant business. Conclusions. It is hypothesized that improving the methodology and organization of financial sustainability management of small restaurants allows to generate quality information space and sufficient resources to ensure a high degree of financial independence and a stable financial condition in which performance will improve or not deteriorate. changes in internal and external factors. It is proposed and substantiated to implement the concept of financial stability management of the enterprise taking into account the time factor in three levels: strategic, tactical and operational. It is noted that in modern conditions entrepreneurs in the field of small business need educational and training services for financial management, in particular, their financial stability, and the most important and most accessible element of financial stability of the enterprise in the short term is its budgeting system. Practical implications. The results of this study are of interest to small restaurant businesses that address financial sustainability management in quarantine, as quarantine and coronavirus (COVID-19) have caused large-scale economic upheaval, forcing entire businesses to adapt to new, more complex realities. In addition, the results can help identify weaknesses in marketing and finance; the most common causes of bankruptcy; internal and external factors that affect the financial stability of small restaurant business. The paper highlights the features and substantiates the main ways to overcome possible problems of managing the financial stability of small restaurant business. Originality/value. This study contains a description of the main parameters of managing the financial stability of the enterprise in terms of management levels; reveals the characteristics of modern small restaurant business and the problems that arise in the process of managing its financial stability; contains proposals to ensure the financial stability of a small enterprise, namely, it is proposed to pay attention to three main components: the efficiency of use and increase of equity; ensuring solvency by regulating the size and structure of property and capital of the enterprise; ensuring liquidity of assets.

THEORETICAL ASPECTS OF ASSESSMENT OF FINANCIAL SUSTAINABILITY OF AGRICULTURAL ENTERPRISES

10.32782/2224-6282/173-11 ◽

2021 ◽

Author(s):

Oksana Pavlenko ◽

◽

Diana Kogushko ◽

Keyword(s):

Financial Stability ◽

Agricultural Development ◽

Legal Framework ◽

Normative Values ◽

Agricultural Enterprises ◽

Financial Condition ◽

Agricultural Enterprise ◽

The Absolute ◽

The article examines the essence of the concept of “financial stability of the enterprise” and different views on its interpretation by domestic scientists. The methodical bases of an estimation of financial stability of the enterprise to which calculation and the analysis of absolute indicators and relative indicators most often belong are considered. Their explanations, formulas for calculation and normative values of these indicators are given. Theoretical aspects of the influence of factors on the provision of financial stability are also given, because this is one of the most important conditions for life, development and further stable provision of a high level of competitiveness of the enterprise. Namely, the factors that are divided into independent of the enterprise and those that directly depend on the internal situation and development of the enterprise were considered. The existing methods of analysis of financial stability of the enterprise are considered and explained. The main ones are aggregate, coefficient, margin, point, balance, integral and factorial methods, as well as the most suitable methods for determining the financial stability of the agricultural enterprise. The application of the main indicators of financial stability of an agricultural enterprise as an indicator of financial stability of the enterprise and solvency is given and substantiated. The main types of financial stability of the enterprise are also given and explained, namely the absolute type, normal, pre-crisis and crisis. The main tasks and prospects of agricultural development are determined. In addition, the main problems in the calculation of indicators and the overall assessment of the financial condition of the agricultural enterprise are identified. The issues that need urgent solution and improvement are proposed to further improve the financial stability of the agricultural enterprise. The main ones are the improvement of the legal framework of Ukraine, to improve the regulation of relations between participants in agriculture, the development of new indicators for assessing the financial condition of agricultural enterprises and revision of regulatory values of these indicators in connection with the specifics of this industry.

STRATEGIC AREAS OF ENSURING FINANCIALLY SUSTAINABLE DEVELOPMENT OF ENTERPRISES IN UKRAINE

Socio World Social Research & Behavioral Sciences ◽

10.36962/swd0604(01)2021-47 ◽

2021 ◽

Vol 06 (04(01)) ◽

pp. 47-53

Author(s):

Karolina Psonka Karolina Psonka ◽

Maksym Zhytar Maksym Zhytar ◽

Alla Navolokina Alla Navolokina

Keyword(s):

Sustainable Development ◽

Strategic Management ◽

Financial Management ◽

Financial Stability ◽

Management Policy ◽

Financial Policy ◽

Management Tools ◽

Current Asset ◽

High Level ◽

Policy Optimization

The article examines strategic areas of ensuring financially sustainable development of enterprises in Ukraine. It proves that the main problem of financial stability of Ukrainian enterprises is the high level of accounts receivable. It presents challenges of ensuring financial stability of local enterprises and offers strategic tools for ensuring financial stability of enterprises. One proves that strategic management of financial stability should take into account not only financial management goals and a type of financial policy but also a kind of financial stability common to the enterprise as of today. Areas of ensuring financial stability using strategic financial management tools include the selection of the target structure of current asset financing, the establishment of principles of cost management policy optimization (relevancy, minimization, planning), which allows specifying measures for gaining targeted financial stability of enterprises. Keywords: strategic areas, enterprises, financial stability, strategic management, financial policy, financial management.

REDUCE RISK OF FINANCIAL STABILITY ENTERPRISE IN CURRENT CONDITIONS

Strategic decisions and risk management ◽

10.17747/2078-8886-2014-3-84-89 ◽

2014 ◽

pp. 84-89

Author(s):

E. Y. Fayantzeva

Keyword(s):

Risk Management ◽

Financial Management ◽

Financial Stability ◽

Management Strategy ◽

Risk Management Strategy ◽

Industrial Enterprises ◽

Risk Management Process ◽

Effective System ◽

High Level ◽

Key Steps

In the current economic conditions, characterized by high level of uncertainty, the need to achieve strategic financial goals of the company and ensuring its long-term financial stability is impossible without an effective system of strategic financial management, an integral part of which is a risk management strategy reduce financial stability. The author loss risk management strategy of financial stability, substantiated scientific and methodological tools of its creation, outlines the basic principles of implementation, performed updated list of the functions. In order to maximize approximation developed strategies to the needs of industrial enterprises and economic instability are highlighted and ordered typical violations of risk management process by the author. Generalizes the scheme proposed risk management strategy losing financial stability. Outlines the key steps in developing and implementing strategies under consideration with their detailed description.

National and Foreign-controlled Companies Operating in Development Activities in Czechia and Aspects of their Capital Structure Management

SHS Web of Conferences ◽

10.1051/shsconf/202112903013 ◽

2021 ◽

Vol 129 ◽

pp. 03013

Author(s):

Dagmar Kalová ◽

Karel Brychta

Keyword(s):

Financial Management ◽

Financial Stability ◽

Value Added ◽

High Standard ◽

Equity Capital ◽

Return On Equity ◽

Foreign Control ◽

High Level ◽

The Impact

Research background: Entities operating in the field of development activities show significant specifics, including a high level of indebtedness. Given the nature of development projects, which are long-term, and their financial complexity, companies take, at the same time, high risks. Therefore, there is need of a high standard of financial management and risk management in this type of companies. Purpose of the article: The aim of the paper was to provide information regarding return on equity and point out the risk factors of financial management. A partial aim of the conducted preliminary research was to identify and evaluate selected differences in financial management of national companies and foreign-controlled companies. Methods: The research was conducted as mixed research. It started with the undertaking of qualitative research focused on textual analysis of the text and collection of selected relevant quantitative data. For evaluation, we used INFA methodology, which links financial controlling and risk controlling indicators. The data under investigation were those related to the evaluation of return on equity in relation to risks taken. The indicators of the assets, self-financing ratio and debt ratio were assessed, including the assessment of the impact of these factors on return on equity and taken risks. Findings & Value added: The research provides new knowledge regarding the extent to which equity capital is used in the financial management of companies operating in the Czech Republic in development activities. The results indiciate that companies under foreign control and domestic companies show differences in financial structure and financial stability indicators, as well as in the effectiveness of using their capital.

FINANCIAL ACCOUNTING APPROACH FOR DECISION MAKING: A CASE ON FOOD RETAILER COMPANY

El Muhasaba Jurnal Akuntansi ◽

10.18860/em.v2i1.2356 ◽

2013 ◽

Vol 2 (1) ◽

Author(s):

Yuniarti Hidayah Suyoso Putra

Keyword(s):

Financial Stability ◽

Position Statement ◽

Financial Accounting ◽

Return On Assets ◽

Operating Cycle ◽

Tax Rate ◽

Company Limited ◽

Food Retailer ◽

Inventory Turnover ◽

This paper aims to evaluate food retailer company based on the financial accounting approach by analyzing statement of financial performance, statement of financial position, statement of cash flow, common size and key market indicators. The research focuses on Woolworths’ Company Limited over period of five years from 1999 to 2003 and compare with competitors Coles Myer Limited and Foodland Limited. The results show Woolworths’ performance over the five years period is improving with gradual increase in net profit margin, return on assets, and the decrease in tax rate and interest expense. Whilst, In short term, working capital ratio and quick assets ratio has been decreased over the past five years which means its current assets is not able to cover up its current liabilities. However, in examining debtor’s turnover (in days), inventory turnover and operating cycle the company is able to sell out its inventories and collect debts quickly which may increase the company’s ability to raise funds when it is needed. Furthermore, in the long term financial stability, Woolworths is using a high level of debt which contributes two thirds of the company’s total assets. Meanwhile, shareholders’ funds only increased as half as it liabilities from 1999 to 2003. Therefore, based on all the analysis, Woolworths is predicted to remain in the food and drug retailing industry.